INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2013

Amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2013 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value

Investment securities available-for-sale:
U.S. Treasury securities	$	999	$	2	$	—		$	1,001
Securities of U.S. government agencies and corporations		60,025		26		(1,151	)		58,900
Obligations of states and political subdivisions		27,182		568		(433	)		27,317
Collateralized mortgage obligations		5,845		20		(4	)		5,861
Mortgage-backed securities		93,751		601		(424	)		93,928

Total debt securities	$	187,802	$	1,217	$	(2,012	)	$	187,007

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2012 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value

Investment securities available-for-sale:
U.S. Treasury securities	$	997	$	8	$	—		$	1,005
Securities of U.S. government agencies and corporations		28,200		105	—				28,305
Obligations of states and political subdivisions		27,226		1,563		(3	)		28,786
Collateralized mortgage obligations		8,156		123		(1	)		8,278
Mortgage-backed securities		116,855		1,524		(262	)		118,117

Total debt securities	$	181,434	$	3,323	$	(266	)	$	184,491

Amortized cost and estimated fair value of debt and other securities by contractual maturity

The amortized cost and estimated market value of debt and other securities at September 30, 2013, by contractual and expected maturity, are shown in the following table.

(in thousands)	Amortized cost		Estimated fair value

Due in one year or less	$	14,628	$	14,666
Due after one year through five years		126,760		126,636
Due after five years through ten years		39,930		39,212
Due after ten years		6,484		6,493

	$	187,802	$	187,007

Analysis of gross unrealized losses of the available-for-sale investment securities portfolio

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2013, follows:

	Less than 12 months					12 months or more					Total
(in thousands)	Fair Value		Unrealized losses			Fair Value		Unrealized losses			Fair Value		Unrealized losses

Securities of U.S. government agencies and corporations	$	47,358	$	(1,151	)	$	—	$	—		$	47,358	$	(1,151	)
Obligations of states and political subdivisions		10,243		(433	)		—		—			10,243		(433	)

Collateralized mortgage obligations		1,880		(4	)		—		—			1,880		(4	)
Mortgaged-backed securities		38,556		(402	)		801		(22	)		39,357		(424	)

Total	$	98,037	$	(1,990	)	$	801	$	(22	)	$	98,838	$	(2,012	)

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2012, follows:

	Less than 12 months					12 months or more				Total
(in thousands)	Fair Value		Unrealized losses			Fair Value		Unrealized losses		Fair Value		Unrealized losses


Obligations of states and political subdivisions	$	1,262	$	(3	)	$	—	$	—	$	1,262	$	(3	)

Collateralized mortgage obligations		1,198		(1	)		—		—		1,198		(1	)
Mortgage-backed securities		29,779		(262	)		—		—		29,779		(262	)


Total	$	32,239	$	(266	)	$	—	$	—	$	32,239	$	(266	)